Financial sponsor

financial buyerfinancial sponsor coverageprivate-equity firm
A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.wikipedia
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Private equity

private-equityequityPrivate equity investor
A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.
Leveraged buyouts involve a financial sponsor agreeing to an acquisition without itself committing all the capital required for the acquisition.

Leveraged buyout

leveraged buyoutsLBOleveraged finance
A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.
The term LBO is usually employed when a financial sponsor acquires a company.

Private equity firm

private equity firmsprivate equity groupprivate equity
A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.
Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.

Mezzanine capital

mezzanine debtmezzaninemezzanine financing
In particular, debt providers are willing to extend credit in the form of bank loans, high-yield debt and mezzanine capital based in part on the reputation of and relationship with the financial sponsor.
Often, a financial sponsor will exhaust other sources of capital before turning to mezzanine capital.

Capital market

capital marketssecurities marketssecurities market
In addition to bringing capital to a deal, financial sponsors are expected to bring a combination of capital markets expertise, various important contacts, strategies for operational improvement, and the experience of owning leveraged companies.

Operations management

operations manageroperationsoperation
In addition to bringing capital to a deal, financial sponsors are expected to bring a combination of capital markets expertise, various important contacts, strategies for operational improvement, and the experience of owning leveraged companies.

Capital structure

capital-structurefinancial structuresenior
As the owners of the company, financial sponsors rarely manage a company directly and are most active in issues relating to the company's capital structure and balance sheet as well as strategic initiatives including mergers and acquisitions, joint ventures, and management restructurings.

Balance sheet

statement of financial positionbalance sheetsbalance-sheet
As the owners of the company, financial sponsors rarely manage a company directly and are most active in issues relating to the company's capital structure and balance sheet as well as strategic initiatives including mergers and acquisitions, joint ventures, and management restructurings.

Mergers and acquisitions

mergermergedM&A
As the owners of the company, financial sponsors rarely manage a company directly and are most active in issues relating to the company's capital structure and balance sheet as well as strategic initiatives including mergers and acquisitions, joint ventures, and management restructurings.

Joint venture

joint-venturejoint venturesJV
As the owners of the company, financial sponsors rarely manage a company directly and are most active in issues relating to the company's capital structure and balance sheet as well as strategic initiatives including mergers and acquisitions, joint ventures, and management restructurings.

Loan

loansconsumer loanslending
In particular, debt providers are willing to extend credit in the form of bank loans, high-yield debt and mezzanine capital based in part on the reputation of and relationship with the financial sponsor.

High-yield debt

junk bondjunk bondsjunk status
In particular, debt providers are willing to extend credit in the form of bank loans, high-yield debt and mezzanine capital based in part on the reputation of and relationship with the financial sponsor.

Stock market

equity marketstock marketsstock
Additionally, many companies owned by financial sponsors will raise equity in the public markets through an initial public offering or (IPO) as a means of exiting an investment.

Initial public offering

IPOwent publicpublic
Additionally, many companies owned by financial sponsors will raise equity in the public markets through an initial public offering or (IPO) as a means of exiting an investment.

Moelis & Company

MoelisMoelis & Co
Moelis & Company is a global independent investment bank that provides financial advisory services to corporations, governments and financial sponsors.

Independent advisory firm

An independent advisory firm (sometimes less accurately called an advisory boutique) is an investment bank that provides strategic and financial advice to clients primarily including corporations, financial sponsors, and governments.

Kohlberg Kravis Roberts

KKRKohlberg Kravis Roberts & Co.KKR & Co.
Many of these companies lacked a viable or attractive exit for their founders as they were too small to be taken public and the founders were reluctant to sell out to competitors and so a sale to a financial buyer could prove attractive.

Corporate finance

financial managementbusiness financefinance
The term LBO is usually employed when a financial sponsor acquires a company.

Equity co-investment

Co-Investmentsco-investmentequity co-investor
An equity co-investment (or co-investment) is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction.

JPMorgan Chase

JP MorganJPMorganJ.P. Morgan
In 1984, Chemical launched Chemical Venture Partners to invest in private equity transactions alongside various financial sponsors.

Centerview Partners

Centerview Capital Holdings
The firm also operates as a financial sponsor in certain private equity transactions.

AlpInvest Partners

NIB Capital
AlpInvest also invests directly alongside some of the largest private equity investors through an active co-investment program and will make mezzanine debt investments into companies owned by financial sponsors.

GCM Grosvenor

The firm is headquartered in Chicago and is owned in part by Hellman & Friedman, a leading private equity financial sponsor.

History of private equity and venture capital

1980s buyout boomHistory of venture capitalLBO boom
Many of these companies lacked a viable or attractive exit for their founders as they were too small to be taken public and the founders were reluctant to sell out to competitors, making a sale to a financial buyer potentially attractive.

Sagent Advisors

The firm also had an active private equity financial sponsor coverage business and a Japan/Asia Focus Group, which provided Cross-border M&A transactions between Japan as well as other Asian countries and North America, formed when Sagent Advisors entered into a business alliance with Daiwa Securities.